Zacks Investment Research upgraded shares of Best Buy (NYSE:BBY) from a sell rating to a hold rating in a research note released on Wednesday.
According to Zacks, “Best Buy has outpaced the industry in a year, thanks to its robust surprise history. The company delivered fourth straight quarter of sales and earnings beat, when it reported third-quarter fiscal 2019 results. Moreover, both the top and bottom lines grew year over year. Higher sales and comps growth, and lower tax rate and solid execution of the ‘Best Buy 2020: Building the New Blue’ initiative contributed to the performance. Further, investments to upgrade e-commerce operations, supply chain and cost reduction efforts are commendable. These prompted management to lift fiscal 2019 view. The company continues to invest in areas like appliances, In-Home Advisor, smart home and Total Tech Support to drive growth. However, higher cost of investments in supply chain, increased transportation costs and the national rollout of its Total Tech Support program have been denting its margins. Also, stiff competition remains a headwind.”
Other research analysts also recently issued research reports about the company. Bank of America restated a buy rating and issued a $92.00 target price on shares of Best Buy in a research note on Tuesday, August 28th. Barclays restated a buy rating and issued a $90.00 target price on shares of Best Buy in a research note on Wednesday, August 29th. Raymond James boosted their target price on Best Buy from $87.00 to $90.00 and gave the company a buy rating in a research note on Wednesday, August 29th. Piper Jaffray Companies lowered their target price on Best Buy from $87.00 to $81.00 and set a buy rating on the stock in a research note on Wednesday. Finally, Morgan Stanley boosted their target price on Best Buy from $78.00 to $80.00 and gave the company an equal weight rating in a research note on Thursday, October 11th. One analyst has rated the stock with a sell rating, thirteen have issued a hold rating and four have assigned a buy rating to the company’s stock. The stock presently has an average rating of Hold and an average price target of $77.06.
Best Buy (NYSE:BBY) last issued its earnings results on Tuesday, November 20th. The technology retailer reported $0.93 EPS for the quarter, beating analysts’ consensus estimates of $0.85 by $0.08. Best Buy had a return on equity of 44.41% and a net margin of 2.52%. The firm had revenue of $9.59 billion for the quarter, compared to the consensus estimate of $9.56 billion. During the same quarter in the previous year, the company posted $0.78 earnings per share. The business’s quarterly revenue was up 2.9% compared to the same quarter last year. On average, equities research analysts anticipate that Best Buy will post 5.18 EPS for the current fiscal year.
The business also recently declared a quarterly dividend, which will be paid on Monday, December 31st. Shareholders of record on Tuesday, December 11th will be given a $0.45 dividend. The ex-dividend date is Monday, December 10th. This represents a $1.80 dividend on an annualized basis and a dividend yield of 2.88%. Best Buy’s dividend payout ratio is currently 40.72%.
In other Best Buy news, insider Asheesh Saksena sold 26,309 shares of the business’s stock in a transaction dated Wednesday, September 5th. The stock was sold at an average price of $80.07, for a total value of $2,106,561.63. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, General Counsel Keith J. Nelsen sold 33,473 shares of the business’s stock in a transaction dated Tuesday, September 4th. The stock was sold at an average price of $80.38, for a total value of $2,690,559.74. The disclosure for this sale can be found here. Insiders sold 76,711 shares of company stock valued at $6,081,426 in the last ninety days. Insiders own 0.75% of the company’s stock.
Several large investors have recently made changes to their positions in BBY. MERIAN GLOBAL INVESTORS UK Ltd lifted its position in shares of Best Buy by 647.0% in the third quarter. MERIAN GLOBAL INVESTORS UK Ltd now owns 2,843,269 shares of the technology retailer’s stock worth $225,641,000 after buying an additional 2,462,655 shares during the last quarter. Swedbank acquired a new stake in shares of Best Buy in the third quarter worth about $174,994,000. Marshall Wace LLP lifted its position in shares of Best Buy by 454.5% during the 2nd quarter. Marshall Wace LLP now owns 1,287,293 shares of the technology retailer’s stock worth $96,006,000 after purchasing an additional 1,055,122 shares during the last quarter. Janus Henderson Group PLC lifted its position in shares of Best Buy by 84.4% during the 2nd quarter. Janus Henderson Group PLC now owns 2,102,292 shares of the technology retailer’s stock worth $156,794,000 after purchasing an additional 962,231 shares during the last quarter. Finally, LSV Asset Management lifted its position in shares of Best Buy by 31.1% during the 2nd quarter. LSV Asset Management now owns 3,134,306 shares of the technology retailer’s stock worth $233,756,000 after purchasing an additional 742,913 shares during the last quarter. 84.91% of the stock is owned by institutional investors.
About Best Buy
Best Buy Co, Inc operates as a retailer of technology products, services, and solutions in the United States, Canada, and Mexico. The company operates in two segments, Domestic and International. Its stores provide consumer electronics, including digital imaging, health and fitness, home automation, home theater, and portable audio products; computing and mobile phones, such as computing and peripherals, networking products, tablets, smart watches, and e-readers, as well as mobile phones comprising related mobile network carrier commissions; and entertainment products, including drones, movies, music, and technology toys, as well as gaming hardware and software, and virtual reality and other software products.
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